Alternatives To Equity Release – What Are My Options?
Reached the age of 55 and want to secure a loan? For many, the obvious route seems to be to release equity on their home to free up some cash. But you may also want to know if there are other options available. In this guide, we’re looking at the alternatives to equity release to help you make an informed decision on securing a loan in later life.
Remortgaging
If you have an existing mortgage left to pay off, you can always look to remortgage. The first step is to contact your current lender to see what they can offer you. You can also shop around to see if other lenders can offer a better mortgage rate or terms.
Retirement Interest-Only Mortgage
Many mainstream mortgages come with upper age limits which pushes older generations out of the market. However, the retirement interest-only mortgage, also known as the RIO, is designed for older borrowers who are struggling to get a regular mortgage.
This type of mortgage has no fixed term and can last until you die. As the name suggests, you only pay back monthly interest payments. You pay back the loan with your estate – similar to equity release.
Want extra cash, but want to avoid acquiring a loan?
If you want to avoid getting a loan altogether, there are other mortgage-free options available. From moving to a cheaper property, to selling your assets, to reviewing your monthly expenditure. Speaking to a financial advisor can really help clarify your options and work out the best ways to save money, so that you may not even need a loan in the first place.
Which option is right for me?
By far the best way to find out which type of mortgage is right for you is to speak to a mortgage advisor. They will get to know your current circumstances and explore your eligible mortgage options. At Agentis, we make mortgages accessible, and our experienced advisors can help explain the alternatives to equity release using jargon-free language. Book your initial consultation with us today. As ‘Whole of Market’ brokers we can shop around on your behalf to secure the right mortgage for you.
